question archive Wealth Company has the following transactions for the month of November: Purchased materials on account for $300,000 Materials requisitioned for $75,000 Direct labor for the month was incurred (but not yet paid) of $50,000
Wealth Company has the following transactions for the month of November: Purchased materials on account for $300,000 Materials requisitioned for $75,000 Direct labor for the month was incurred (but not yet paid) of $50,000
Subject:AccountingPrice:3.87 Bought7
Wealth Company has the following transactions for the month of November:
Purchased materials on account for $300,000
Materials requisitioned for $75,000
Direct labor for the month was incurred (but not yet paid) of $50,000.
Actual overhead for the month was $30,000. It has not been paid yet. (Charge to various payables.)
Overhead is applied to production at the rate of 50% of direct labor.
Jobs totaling $50,000 were transferred from Work-in-Process to Finished Goods.
Jobs costing $34,000 were sold.
Balances at the beginning of the month were:
Materials 34,240
Work-in-Process 0
Finished Goods 12,000
Calculate the ending balance of raw materials.
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Answer
- Ending balance of raw materials = 259240
Ending balance of raw materials = Beginning balance of raw materials + Material Purchase - Material requisitioned
Ending balance of raw materials = 34240+300000-75000
Ending balance of raw materials = 259240
